Don't Setup Company in Dubai - 3 Major Issues

Added: 2026-05-12

[00:00:00]Don't set up a company in Dubai. There is just no point of setting up a company in Dubai right now as now Dubai is not the same Dubai as it used to be 10 years ago. There is now a lot of strictness in Dubai and therefore I would recommend everyone to watch this video before setting up a company in Dubai. Hi everyone, I am Karan Batra and I've been helping people set up companies in Dubai for more than 15 years now. And in this video I would be talking about the three major reasons why you should not set up a company in Dubai. The first reason is the strict banking laws. Earlier what used to happen was that you could deposit any amount of cash in the bank without any issues. And a lot of people they used to set up companies only for this purpose because they could deposit as much money as much cash in the bank without any questions being asked.

[00:00:59]However, this is not the case anymore.

[00:01:02]If you deposit a large chunk of money in the bank, EML notice will get triggered.

[00:01:07]AML it stands for anti-money laundering.

[00:01:11]And if you deposit more than 55,000 dirhams cash in the bank which is almost equal to say like 12 lakh rupees in the Indian currency you're bound to receive a notice for anti-money laundering as to where did you get the money from where did you get so much cash from the second reason why Dubai is not recommended anymore is that it no longer enjoys the tax-free status there is now a 9% corporate tax in Dubai which is applicable able on all companies with profits of more than 375,000 dirhams.

[00:01:46]The first 375,000 dirhams, they continue to remain tax-free while the profits above this limit, they are taxable at 9%. All companies are now also required to file an annual corporate tax return.

[00:02:01]But this tax is only applicable for companies. The income of an individual, it still continues to be taxfree. And the third reason why it is not advisable for you to set up a company in Dubai is if you wish to deal with sanctioned countries like Russia, Iran etc. A lot of Indians who deal with clients from Russia, Iran etc. They have a lot of issues in receiving payments in India.

[00:02:28]And therefore they think that setting up a company in Dubai will solve all their problems and they could easily receive funds in Dubai and then from Dubai they could move it to India. But that is not the case. You cannot receive payments from countries like Russia, Iran, etc. Even in Dubai, the Dubai bank will flag these payments and the money will get stuck. In fact, at the time of setting up the company, you're also required to give a declaration that you would not be dealing with these sanctioned countries.

[00:02:59]However, you can deal with any other country and the money will easily come through. Apart from the above mentioned reasons, if you wish to do any other business like say forex trading or crypto trading, then Dubai is certainly the best place to be setting up a company. Or if you intend to target global clients and scale up your business, then also Dubai is the best launchpad to make your business go global. And if you're planning to set up a company in Dubai, feel free to reach out to me and my team through a one-to-one strategy call which can be booked through the link given in the description below. Thank you.